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Eurozone Inflation
Comments
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Are some eurozone countries having rates of 3 or 4%?
http://www.inflation.eu/inflation-rates/cpi-inflation.aspxDon't blame me, I voted Remain.0 -
Hardly surprising that inflations is low when youth unemployment is over 50% in some countries. There's always far more behind the headlines.0
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Graham_Devon wrote: »Joining in then?
Thought this sort of stuff would be below yourself, but clearly not.
To be fair the Devon School of Economics is becoming less about you and more of a byword for muddled thinking. Just go with it - doubt Dr. Spooner would be personally offended by the use of the word Spoonerism.
Interesting point being made though. If the price of something is unaffected by domestic interest rates the what's point of raising interest rates to control the price?0 -
Interesting point being made though. If the price of something is unaffected by domestic interest rates the what's point of raising interest rates to control the price?
Would raising ineterest rates strengthen the pound therefore reducing imported inflation?
Raising interest rates would also stifle demand so prices may fall? Shame reduced demand doesn't seem to reduce energy unit costs."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Would raising ineterest rates strengthen the pound therefore reducing imported inflation?
Raising interest rates would also stifle demand so prices may fall? Shame reduced demand doesn't seem to reduce energy unit costs.
Raising interest rates which might strengthen Sterling as a method to control the price of something that's price isn't influenced by interest rates doesn't seem that subtle.
Probably better to look beyond interest rates in such cases.
Petrol has been deflationary in the last year - maybe there's scope to reduce interest rates?
Reduced demand does put downward pressure on energy prices. Unfortunately demand is increasing elsewhere; if we're unwilling to compete for the energy the lights will go out.0 -
Raising interest rates which might strengthen Sterling as a method to control the price of something that's price isn't influenced by interest rates doesn't seem that subtle.
Probably better to look beyond interest rates in such cases.
Petrol has been deflationary in the last year - maybe there's scope to reduce interest rates?
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Why wouldn't increasing sterling reduce improted inflation?
Fuel hasn't really changed much by us diesel is stil £1.40+. It is cheaper where there is real competion, I grant you, but it is still within the range of variation seen over the last 12 months.
Really must move to the EMids everything is cheaper over there."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Why wouldn't increasing sterling reduce improted inflation?
Fuel hasn't really changed much by us diesel is stil £1.40+. It is cheaper where there is real competion, I grant you, but it is still within the range of variation seen over the last 12 months.
Really must move to the EMids everything is cheaper over there.
Increasing the value of sterling would reduce imported inflation. Not arguing just suggesting that increasing interest rates isn't a panacea.
If something is increasing in price faster than we'd like increasing interest rates isn't always the ideal place to start. If it's houses or energy then why not look at why that's happening. Could simply be lack of supply - don't see how higher interest rates can overcome basic fundamentals.
Petrol down by about 6p per litre in a year - that's from the AA rather than my own records0 -
grizzly1911 wrote: »Would raising ineterest rates strengthen the pound therefore reducing imported inflation?
Temporarily.
But then the stronger pound would reduce exports, weakening the economy.
And the increased interest rates would destroy demand within the economy, decreasing economic activity and increasing unemployment.
And the decreased activity and increased unemployment would require additional government spending on benefits, and result in reduced tax revenue. Worsening the deficit.
And then the markets would see the terrible economic performance of the UK, and the pound would fall back again.
Putting us back to square one in terms of imported inflation, but with another recession, rising unemployment, and a worsening deficit.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Temporarily.
But then the stronger pound would reduce exports, weakening the economy.
And the increased interest rates would destroy demand within the economy, decreasing economic activity and increasing unemployment.
And the decreased activity and increased unemployment would require additional government spending on benefits, and result in reduced tax revenue. Worsening the deficit.
And then the markets would see the terrible economic performance of the UK, and the pound would fall back again.
Putting us back to square one in terms of imported inflation, but with another recession, rising unemployment, and a worsening deficit.
Best get stoking the HPI model then instead."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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